REG - Ceres Power Holdings - Ceres signs first hydrogen licence with Delta

Ceres Power HoldingsAnnouncement

18/01/2024 07:00

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RNS Number : 0778A  Ceres Power Holdings plc  18 January 2024

18 January 2024

 

Ceres Power Holdings plc

("Ceres", the "Company")

 

Ceres signs first hydrogen licence with Delta

 

Horsham, UK: Ceres Power Holdings plc (CWR.L), a leading developer of clean
energy technology, and Delta Electronics ("Delta"), a global leader in power
and thermal management solutions, today make a joint press release on their
collaboration, which is shown in full at the end of this statement.

 

Ceres and Delta have signed a global long-term manufacturing collaboration and
licence agreement for both solid oxide electrolysis cell ("SOEC") and solid
oxide fuel cell ("SOFC") stack production.

 

·      The agreement includes revenue of £43 million to Ceres through
technology transfer, development license fees, and engineering services, of
which approximately half is expected to be recognised as revenue in 2024

·      There is potential for additional revenue from the sale of Ceres
development stacks to Delta

·      The agreement also includes royalty payments to Ceres on future
commercial production and sale to end customers by Delta

·      Technology introduction and factory construction will start from
2024 and the initial production by Delta is expected to start by the end of
2026

·      Delta provides solutions to customers worldwide, across a myriad
of sectors including chemicals, energy, transportation, steel and more, with
strong ambition for future scale up

 

Headquartered in Taiwan, Delta employs over 80,000 people across approximately
200 facilities worldwide and is listed on the Taiwan Stock Exchange with a
market capitalisation of approximately US$23 billion. Delta's expertise in
mass manufacturing, power electronics and data centres for customers like
Microsoft, has seen it diversify into turnkey decarbonisation solutions and
the development of smart buildings, energy infrastructure, grid balancing and
energy storage for customers such as Tesla.

 

Phil Caldwell, CEO of Ceres commented, "It's great to announce a new
partnership today with Delta, a company with worldwide expertise in mass
manufacturing, power electronics and system integration. We believe Delta can
deliver efficient clean hydrogen solutions for its customers utilising both
our SOFC and SOEC technologies. Green hydrogen has a key role to play in
delivering a more secure and sustainable future energy system and today we
take this first step towards what promises to be a strong collaboration with
Delta to accelerate the industry globally."

 

A call for investors will be held at 14.00 GMT regarding the announcement. To
register your interest in participating, please go to:
https://www.investormeetcompany.com/ceres-power-holdings-plc/register-investor
(https://www.investormeetcompany.com/ceres-power-holdings-plc/register-investor)
.

 

Ends

 

For further information visit www.ceres.tech (http://www.ceres.tech/)  or
contact:

 Ceres Power Holdings plc          Tel: +44(0)7932 023 283

 Elizabeth Skerritt                Email: elizabeth.skerritt@cerespower.com

 FTI Consulting (Financial PR)     Tel: +44 (0)203 727 1000

 Dwight Burden / Ben Brewerton     Email: ceres_power@fticonsulting.com (mailto:Ceres_power@fticonsulting.com)

JOINT PRESS RELEASE

 

Delta Secures License to Hydrogen Energy Technology from UK-listed Ceres to
Develop its Fuel Cell and Electrolysis Solutions

 

TAIPEI, January 18, 2024 - Delta Electronics, Inc. (hereinafter referred to as
"Delta"), a global leader in power and thermal management and provider of
IoT-based Smart Green Solutions, today announced the signing of a long-term
collaboration agreement, which includes technology transfer and licensing,
with Ceres Power Limited, subsidiary of London Stock Exchange-listed Ceres
Power Holdings plc (hereinafter referred to as "Ceres") to access Ceres'
Hydrogen energy stack technology portfolio for approx. GBP43 million. Ceres is
a global leader in solid oxide fuel cell and electrochemical technology.
Through this partnership, Delta expects to integrate Ceres' energy stack
technology with its own industry-leading power electronics and thermal
management technologies to develop solid oxide fuel cell (SOFC) and solid
oxide electrolysis cell (SOEC) systems for hydrogen energy applications, with
production expected to start by the end of 2026, with strong ambition for
future scale-up. These SOFC and SOEC systems are expected to enhance the
capabilities of Delta's green solutions for a myriad of sectors, such as,
chemicals, energy, transportation, steel and more.

 

Ping Cheng, Delta's CEO, said, "Hydrogen has high heating value and zero CO2
emission potential characteristics, and thus, will play a crucial role in the
global transition towards net-zero. Moreover, Hydrogen SOFC systems boast
reliability and high efficiency in electricity generation, making them ideal
for micro-grid applications, distributed power systems, mission-critical
facilities, such as data centers, semiconductor production lines, and other
advanced manufacturing. SOEC systems will also play a key role in the
chemical, utilities, and steel industries as they are adopting green hydrogen
to replace fossil fuels in their manufacturing processes and operations. By
leveraging Ceres' expertise in solid oxide stack technology and our
industry-leading technologies in power and thermal management, Delta will
enrich its infrastructure solutions portfolio by delivering high-efficiency
SOFC and SOEC systems for our customers worldwide, hence, further contributing
to global carbon reduction targets."

 

Phil Caldwell, CEO of Ceres added, "It's great to announce a new partnership
today with Delta, a company with worldwide expertise in mass manufacturing,
power electronics and system integration. We believe Delta can deliver
efficient clean hydrogen solutions for its customers utilising both our SOFC
and SOEC technologies. Green hydrogen has a key role to play in delivering a
more secure and sustainable future energy system and today we take this first
step towards what promises to be a strong collaboration with Delta to
accelerate the industry globally."

 

In addition to licensing key energy stack technologies, Delta will also
establish a "Net-zero Science Laboratory" at its Tainan manufacturing complex
to develop cutting-edge zero-carbon technologies, including hydrogen energy,
and to enrich its own R&D capabilities in related application fields. From
2024 to 2026, Delta expects to carry out product development and production
line integration at its Tainan plant with Ceres' engineering service support.
Production for the aforementioned technology is expected to start by the end
of 2026. Delta expects to further integrate its diverse smart energy
solutions, including microgrid applications and energy management platforms,
with these hydrogen energy systems to provide a more comprehensive and
flexible low-carbon infrastructure offerings to its customers.

 

Ceres' stack technology is the core for both SOFC and SOEC. In the application
of SOFC, it can generate electricity, water and heat by reacting oxygen with
hydrogen or methane. Its power generation efficiency, which is around 60% and
can even reach 85% with a heat recovery system, is significantly higher than
the efficiency of centralized gas-fired power generation units, which are
around 40~50%. As SOFC can be built near places with electricity demands, it
is able to avoid power transmission loss and other unexpected unstable factors
during the transmission and distribution process. Hence, it's highly suitable
for facilities that require stable power.

 

SOEC technology produces hydrogen up to 25% more efficiently than incumbent
low temperature technologies particularly when thermally integrated with
industrial processes. With electricity coming from renewable sources, the
technology can produce green hydrogen, which would be optimal for the
decarbonisation of various industries, including steel and chemical, which are
seeking to replace the fossil-based materials in their processes to ultimately
reduce carbon emissions. Green hydrogen is also one of the key ingredients to
produce carbon-neutral e-fuels, with the support of carbon capture technology
for its carbon sources. E-fuels are alternative energy sources for ICE
vehicles, ships and aircrafts under the net-zero transition.

 

Ceres, headquartered in Horsham, the UK and listed on the London Stock
Exchange since 2023, has been perfecting its solid oxide technology for more
than 20 years, with an industry-leading position in fuel cell and
electrochemical technology. Ceres operates a licensing business model.

 

With global energy transition trends, it is expected that the global demand
for hydrogen will reach 223 Mt in 2030, and 630 Mt in 2050*. Hydrogen
applications will play a crucial role in achieving net zero targets.

 

*Note: Please refer to IRENA_Global_hydrogen_trade_part_1_2022

 

Ends

 

 

About Delta

Delta, founded in 1971 and listed on the Taiwan Stock Exchange (stock code:
2308), is a global leader in switching power supplies and thermal management
products with a thriving portfolio of smart energy-saving systems and
solutions in the fields of industrial automation, building automation, telecom
power, data center infrastructure, EV charging, renewable energy, energy
storage and display, to nurture the development of smart manufacturing and
sustainable cities. As a world-class corporate citizen guided by its mission
statement, "To provide innovative, clean and energy-efficient solutions for a
better tomorrow," Delta leverages its core competence in high-efficiency power
electronics and its ESG-embedded business model to address key environmental
issues, such as climate change. Delta serves customers through its sales
offices, R&D centers and manufacturing facilities spread over close to 200
locations across 5 continents.

 

Throughout its history, Delta has received various global awards and
recognition for its business achievements, innovative technologies and
dedication to ESG. Since 2011, Delta has been listed on the DJSI World Index
of Dow Jones Sustainability™ Indices for 13 consecutive years. In 2020 and
2022, Delta was also recognized by CDP with double A List for its substantial
contribution to climate change and water security issues and named Supplier
Engagement Leader for its continuous development of a sustainable value chain
for 6 consecutive years.

 

For detailed information about Delta, please visit: www.deltaww.com
(http://www.deltaww.com)

 

Delta's Spokesperson:

Jesse Chou, Chief Sustainability Officer

Tel: +886-2-87972088 Ext: 5562

 

Media Contact:

Corporate Communications

Johnny Shih, Project Manager

Tel: 886-2-8797-2088  Ext: 5182

Mobile : +886-0922-820-302

E-Mail: johnny.shih@deltaww.com

 

About Ceres

Ceres is a leading developer of clean energy technology; electrolysis for the
creation of green hydrogen and fuel cells for power generation. Its
asset-light, licensing model has seen it establish partnerships with some of
the world's largest companies, such as Bosch, Doosan, Shell and Weichai.
Ceres' solid oxide platform technology supports greater electrification of our
energy systems and produces green hydrogen at high-efficiencies as a route to
decarbonise emissions-intensive industries such as steelmaking, cement and
future fuels.  Ceres is listed on the London Stock Exchange ("LSE") (LSE:
CWR) and is classified by the LSE Green Economy Mark, which recognises listed
companies that derive more than 50% of their activity from the green economy.

 

For further information visit www.ceres.tech (http://www.ceres.tech/)  or
contact:

 Ceres Power Holdings plc          Tel: +44(0)7932 023 283

 Elizabeth Skerritt                Email: elizabeth.skerritt@cerespower.com

 FTI Consulting (Financial PR)     Tel: +44 (0)203 727 1000

 Dwight Burden / Ben Brewerton     Email: ceres_power@fticonsulting.com (mailto:Ceres_power@fticonsulting.com)

 

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